Delaware Whistleblower Law
Whistleblower protection was recognized as a breach of contract/covenant of good faith and fair dealing. However, the state legislature called into question this precedent when it amended the Delaware Discrimination Employment Statute, making that law the sole remedy for violations of the act. Prior to filing a common law claim for wrongful discharge in Delaware, it is important to review the scope of the exemption set forth in 19 Del. C. § 712. Crawford v. George & Lynch, Inc., 2012 W.L. 2674546 (D. Del. 2012).
Court Decisions:
- Merrill v. Crothall-American, Inc., 606 A.2d 96 (Del. 1992)
- Rizzitiello v. McDonald’s Corp., 868 A.2d 825 (Del. 2005)
- E.I. Dupont De Nemours and Co. v. Pressman, 679 A.2d 436 (Del. 1996)
- Town of Cheswold v. Vann, 9 A.3d 467 (Del. 2010) (compensatory damages available in good faith and fair dealing case)
- Kelsall v. Bayhealth, 2015 Del. Super. LEXIS 1045 (2015) (requirements under Delaware WPA)
Statutes:
- Delaware Whistleblower Protection Act, 19 DE Code § 1702–1708
- 29 DE Code § 5115 (public employees)
- The Delaware Whistleblower Protection Act covers public and private employees, has a three-year statute of limitations, and permits whistleblowers to obtain reinstatement, back pay, and attorney fees.
Frequently Asked Questions
Does Delaware have a False Claims Act (FCA)?
Yes, the Delaware False Claims and Reporting Act. The Act covers more frauds than those in the healthcare industry.
Does the Delaware FCA have a whistleblower provision?
Yes. State intervention in a case could leave a whistleblower with an award between 15 and 25 percent. In a case that lacks state intervention, a collection could be between 25 and 30 percent. Any indication that the claimant planned or initiated the violation may reduce the award.
Does Delaware recognize the public policy exception for wrongful termination?
Yes. Delaware case law allows exceptions to the “at-will” employment doctrine when such termination would be a violation of public policy.
